From 1 November 2022 businesses and agents will only be able to file VAT returns using MTD compatible software – HMRC’s online VAT return will close. The online VAT return will only remain available to those with a digital exclusion exemption. MTD VAT is just around the corner, this is the final call.
The ICAEW are reporting that potentially 10% of businesses above the VAT threshold and a staggering 55% of businesses below it STILL NEED to sign up to MTD VAT. If your business hasn’t already done so, make sure to sign up now.
To find out more about how to sign up please watch the video linked below:
The End of the online VAT Return
HMRC is taking the “making it impossible, from 1 November 2022, for most businesses to file a VAT return other than using MTD compatible software” route as opposed to charging the filing method penalty. Businesses will be at risk of incurring default surcharge or, from January 2023, late submission penalties and/or late payment penalties and interest.
If your business has a taxable turnover over the VAT registration threshold of £85,000, you have been required to comply with Making Tax Digital (MTD) VAT rules since 2019. The requirements were extended to ALL VAT registered businesses from their first VAT accounting period starting on or after 1 April 2022.
Amy Thompson Tax Manager at HB Accountants is concerned:
Businesses with an issue with their VAT records or who are too busy working or who aren’t computer literate may not realize just how important it is to sign up to MTD VAT with HMRC.
Annual online VAT Return
If you file VAT returns annually, the online VAT return will remain available to you until 15 May 2023.
Would you like some expert Tax advice?
If you would like advice on MTD VAT, trust registration, or any other aspect of tax planning please do contact us on 01992 444466.
